Canadian Occidental Petroleum Reports Record Quarterly Cash Flow and Net Income

Strategic Insights -

Canadian Occidental Petroleum Ltd., a Canadian energy company, has reported record quarterly cash flow and net income, exceeding expectations and significantly enhancing the company's financial flexibility. The company's strong performance is attributed to its diversified operations, robust crude oil production, and successful expansion into international markets. This report highlights key takeaways from the company's second-quarter results and provides a snapshot of its financial and operational performance.

Key Takeaways:

  • Canadian Occidental Petroleum reported a new quarterly record cash flow of $167 million ($2.48 per common share), representing a 36% increase compared to the second quarter of 1994.
  • Net income also reached a new quarterly record, totaling $41 million ($0.61 per common share), compared to $23 million ($0.34 per common share) in the same period last year.
  • The company's International Division contributed significantly to its success, recording a 42% increase in cash flow and a 54% increase in operating profit compared to the second quarter of 1994.
  • Crude oil production reached record levels, averaging 135,000 barrels per day, a 17% increase over the second quarter of 1994.
  • The company's production expansion has led to improved financial flexibility, with net debt totaling $677 million, a reduction of $85 million during the second quarter of 1995 and $336 million over the past 12 months.
  • Canadian Occidental Petroleum has increased its regular quarterly dividend by 25% to 12 1/2 cents per common share, payable to shareholders on October 1, 1995.

Statistics:

  • Cash flow: $167 million ($2.48 per common share)
  • Net income: $41 million ($0.61 per common share)
  • International Division cash flow: 42% increase
  • International Division operating profit: 54% increase
  • Crude oil production: 135,000 barrels per day
  • Natural gas production: 223 million cubic feet per day
  • Net debt: $677 million
  • Dividend increase: 25% to 12 1/2 cents per common share

Sources:

  • Canadian Occidental Petroleum Ltd. press release, July 21, 1995.
  • BUSINESS WIRE, July 21, 1995.
  • CONTACT: Kevin Finn, Shareholder Inquiries, 403/234-1932, and John McWilliams, Media Inquiries, 403/234-6729.